Ericsson Q4 earnings miss, equipment sales ease
By Iain Gilbert
Date: Friday 20 Jan 2023
(Sharecast News) - Telecommunications group Ericsson posted weaker-than-expected fourth-quarter core earnings on Friday amid a slowdown in 5G equipment sales.
Ericsson said net sales rose 21% to SEK 86.0bn in the fourth quarter of the trading year, but stated margins and core earnings had all fallen, with margins contracting from 43.2% to 41.4% and adjusted operating earnings, excluding restructuring charges, dropping from SEK 12.8bn to SEK 9.3bn.
Ericsson also said it expects to see a fall in margins in its networks unit to carry on throughout the first half of 2023 but noted that the effect of its SEK 9.0bn cost savings programme will likely emerge in the second quarter.
The Swedish firm's South East Asia, Oceania, and India market was the only one to witness growth in the quarter, up 21% to account for 13% of Ericsson's business.
As of 1310 GMT, Ericsson shares were down 5.88% at SEK 58.27 each.
Reporting by Iain Gilbert at Sharecast.com
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